• Website last updated at: 27-Sep-2022 05:27 PM
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           A JV of RITES Ltd & Ministry of Railways

Business Plans

Indian Railways with a vision to reduce its dependence on fossil fuel and cater the need of decarbonisation under the aegis of Indian Railways Solar Mission has been promoting renewable energy in its infrastructure. Your company is helping IR to achieve its solar mission. REMCL is driving IR towards its journey to become world class integrated power major in the sector. REMCL is efficiently managing the power portfolio of Indian Railways which includes traction load, renewable energy (wind and solar), transmission projects, legal & regulatory assistance to IR in power sector etc.

Indian Railways is a bulk consumer of electricity; it used to pay extremely high charges for drawl of energy for its traction purposes. In order to make the railways profitableby reducing its operating expenses, IR has to find a way to draw energy at economical prices. Deemed Distribution Licensee (DDL) status enables Indian Railways to directly buy energy from generators by paying applicable charges to central and state transmission system under open access.

Operationalization of deemed licensee status has given an unprecedented opportunity to IR to address the high cost of traction energy which is a key variable cost. Successful reduction in this cost will help in improving the financial performance of IR. After successful procurement of traction energy through open access in Maharashtra, Gujarat, Madhya Pradesh, Jharkhand, Rajasthan, Uttar Pradesh, Haryana, Karnataka & Delhi; it has been established that there is a great potential for substantial savings through these routes.

Accordingly, IR through REMCL has tied up about 585 MW for consumption in Odisha, Bihar, Uttar Pradesh, Punjab, Haryana, Delhi, Rajasthan and Chhattisgarh at an average tariff of ` 3.65 per unit at railway consumption point (i.e TSS). In addition to this 540 MW power from RGPPL has been tied up at an average tariff of 5.50 per unit for the consumption in Maharashtra, Gujarat, Madhya Pradesh, Jharkhand, UP-ISTS and Karnataka.